Will the banks now share the rate drop wealth ?

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In a surprise move the bank of Canada cut their overnight lending rate by a 0.25%.  As mentioned in last weeks Abbotsford Mortgage News Blog it has been 4.5 years since the BoC has moved in any direction.

This overnight lending rate that has dropped is effectively the rate that the banks borrow at when setting their prime rate.  If the banks shares the wealth, prime rate should be dropping to 2.75% across the industry in the next couple days. Lets just hope the banks share the wealth (which I expect they will). We will all instantly see all of our Variable Rate Mortgages and Line Of Credit Mortgages drop their rates if the banks decide to share.

  • Rates for floating loans should drop ie) Line Of Credits
  • First time Prime Rate move in almost 4.5 years
  • The bank cost of business just got cheaper, but will they pass those savings along?
As discussed late last week, the 5 year fixed rate mortgage should also drop and currently should be at 2.50% – 2.70% right now based off of where bond rates are sitting as well.
The banks are all sitting tight at 2.89% on their 5 year fixed and raking in the profit on the back end. With a majority of the public happy with a 2.89% 5 year fixed there is no reason for them to drop their fixed rate mortgages. That is where mortgage brokers can help, we deal with many lenders out side the the top five banks whom traditionally move slow when it comes to rate drops. This enables us to find the best 5 year fixed mortgage in the industry.
To make sure you are getting the sharpest mortgage rate talk to one of the top mortgage brokers in our Abbotsford, Chilliwack or Mission office.

By Referral Mortgage Consultants*

“Click, Call, Chat – Award Winning Brokers”
 1 – 32540 Logan Ave
Mission BCV2V 6G3

&

360-3033 Immel St

AbbotsfordBCV2S 6S2

&

8387 Young Rd

ChilliwackBCV2P 4N8

Dave  604 897 2741 Jordi 604 615 1312
www.AbbotsfordsMortgageBroker.com

 

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*By Referral Mortgage Consultants – doing business as BRMC is: Verico Preferred Financing Inc / Verico Canadian 1st Mortgage Corp which have a co-brokering agreement and there is a common Mortgage relationship and are licensed with the Verico Dreyer Group. Mortgage ownership, that employees of both Mortgage companies may review, advise and help process the Mortgage files. That Verico Preferred Financing Inc & Verico Canadian 1st Mortgage Corp share the some expense and income from mortgages. Kim Langille Featured on thess site is an unlicensed mortgage assistant only, not a Mortgage Consultant. Jordi Browne featured on this site is the Mortgage Broker of record. “The Broker” is Jordi Browne. Jordi Browne also holds a Life Insurance License and represents Verico Canadian 1st Mortgage Corp. Dave Browne featured on this site has a Life Insurance License too but is an independent agent– Jordi and Dave Browne co-broker life insurance files and share expenses, all income retained by Verico Canadian 1st Mortgage Corp. 

 

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